2023 (11) TMI 954 - HC - GST

Seeking release of amount resumed/seized by respondent no. 2 - power to seize cash under Section 67 of the CGST Act - HELD THAT - The present petition is required to be allowed and the respondents are liable to refund the money seized - The respondents state that the amounts so seized has been kept in a fixed deposit bearing interest. Respondent no. 2 is accordingly directed to remit the amount of Rs.14, 50, 000/- along with accrued interest to the bank account of petitioner no. 1 and remit Rs.1, 00, 50, 000/- along with accrued interest to the bank account of petitioner no. 2 - Petition allowed.

Summary

Issues involved: Petition for release of seized cash u/s 67 of the CGST Act, 2017.

Summary:
The petitioners, two brothers residing in separate floors of a building, filed a petition seeking the release of an aggregate amount of Rs. 1,15,00,000/- seized during a search conducted at their residential premises under Section 67 of the Central Goods and Services Tax Act, 2017. The search revealed cash amounts in the bedrooms of each petitioner, with no satisfactory explanation provided for the source of the cash. The petitioners contended that the officers had no power to seize cash under Section 67 of the CGST Act without proper explanation, citing previous decisions of the Court. The petition sought the release of the seized money, which the respondents had kept in a fixed deposit bearing interest. The Court directed respondent no. 2 to remit the respective amounts along with accrued interest to the bank accounts of each petitioner. The petitioners were instructed to provide bank account details to the respondents within one week, with the amounts to be remitted within two weeks thereafter. It was clarified that other authorities, such as the Income Tax Department, were not precluded from taking necessary steps regarding the petitioners' possession of cash, and the respondents were also allowed to take further action under relevant statutes within the bounds of the law.